About 66 people were killed and over 470 injured on Thursday as 13 near-simultaneous blasts ripped through Guwahati and three other towns.

The first explosion went off at around 11.15 am in Guwahati and was followed by blasts in Kokrajhar, Bongaigaon and Barpeta in lower Assam.

As usual there were acrimonious reactions from all political parties. While ULFA (United Liberation Front of Assam), the most active terrorist outfit from Assam has denied involvement, it is suspected that it could be the handiwork of HUJI (Harkat-ul-Jihad-al Islami) militants from Bangladesh.

What are the options that the G20 have before them to tackle the current financial crisis?

Ensuring greater levels of consumption within China to keep the Chinese economy’s demand for exports from the rest of the world strong, making it the engine of growth the world needs.

Making the present day forex hoarders -- notably China, the Gulf countries, ASEAN etc., -- switch a portion of their reserves from US treasuries to other countries/currencies so that the dollar's strength can be calibrated to ensure that US can start exporting goods and services again; which have become very uncompetitive in view of the abnormal strength of the currency.

A direct intervention in the US housing market -- through coordinated policies that would encourage investment there by individuals as well as REIT (Real Estate Investment Trusts) -- to create a win-win situation of getting dirt cheap houses in US and also perking up their demand.

With the forex reserves at the command of the G20, it is possible that the above measures can be implemented. But will G20 bite?

Factors that are negatively impacting the domestic aviation sector

Heavy taxation on ATF (Aviation Turbine Fuel). States in India are levying sales tax of 25% to 32% on ATF.

It is not just the high tax but the base rate of the ATF that is being offered by the oil companies is double the international price of fuel at current rates.

Very high charges for any aircraft related activity. For instance, the landing charges in India are the highest in the world.

The infrastructure limitations in terms of runways are an economic drain on airlines. Every minute of delay in landing, costs a fortune at current ATF rates.

An emerging nexus between politicians and the aviation sector employees, as has been demonstrated in the recent Jet Airways employee dismissal issue.

Why was India facing a liquidity crisis? Liquidity was tight due to a combination of local and global factors:

Dollar sales by the central bank to stem the rupee's slide following strong foreign fund outflows from the battered stock market.

Tax payments by corporates shifted funds out of the system and into the government's account. Planned government spending had also not materialised, and this usually passes into the banking system.

Here is an inventory of the measures taken by Indian authorities to face the liquidity crisis:

Overnight cash rates have eased to 6.90/7.00, well below the central bank's main lending rate of 9 per cent and down from 10.00 per cent on Wednesday and 23 per cent last Friday.

Banks' cash reserve requirement (CRR), the proportion of deposits banks must keep in reserve, cut by 250 basis points over past week to 6.5 per cent, its lowest in a year. Measure to infuse one trillion rupees ($20.6 bn) into the banking system.

Authorities have provided Rs 250 billion to lending institutions as part of farm loan waiver plan.Central bank introduced special 14-day repo auction to enable banks to meet liquidity requirements of mutual funds. It will hold the special repo every day until an allocated 200 billion rupees has been used.

Central bank has also relaxed rules to allow commercial banks to accept certificate of deposits held by mutual funds as collateral.

It has introduced an afternoon liquidity adjustment facility -- a repo or reverse repo -- to infuse or absorb cash, in addition to its usual morning one.

It has temporarily let banks use some of their regulatory bond reserves, held under the Statutory Liquidity Ratio, as collateral for extra cash.

Banks can also use more of their regulatory bond reserves as collateral to meet liquidity needs of mutual funds.

Government eased rules for some foreign borrowings by companies, while the stock market regulator relaxed rules for indirect investments by foreign institutions in stocks via participatory notes.

Cap on foreign fund investments in corporate bonds raised to $6 billion from $3 billion also to attract inflows.

Government to provide finance to banks to help them raise their capital adequacy ratio to 12 percent. Details not yet finalised.

Falling inflation doesn't make news?

Inflation is now at 10.68%; but seems to be not catching the attention it deserves.

There were times when all of us worried about even a one basis point raise in inflation figures. How curious can life be!

US economy shrinks

The U.S. economy shrank at a 0.3 percent annual rate in the third quarter. While the data was not as bad as economists had expected, it was still the sharpest contraction in the United States in seven years as consumers cut spending and businesses reduced investment in the face of rising fears that recession was setting in.

We have read about the DMIC corridor for quite some time. Time to look at it again from a different perspective; especially in view of the bad necessity now to pump in money into infrastructure development as a measure of shoring up the economy.

Indian airlines move to the transaction fee format from the present commission format of selling their tickets

All major Indian carriers—Air India, Jet Airways and Kingfisher Airlines—will move from a ‘commission’ format to a ‘transaction fee’ format from Friday night.

The critical difference between ‘commission’ and ‘transaction fee’ is that while the former was being deducted by the travel agent from the airline, the latter will be paid by the customer to the travel agent. The transaction fee will be a part of the price of the ticket. It will be collected by airlines and handed over to the travel agent. While the travel agent had the flexibility to waive off or reduce the commission percentage, the transaction fee will be fixed and mandatory. Of course, for tickets booked directly, the transaction fee will not be applicable.

Anand and Chess Oscars

Vishwanathan Anand is the first non-Russian to win the coveted Chess Oscar five times.

The Chess Oscar is conducted every year by the Russian magazine 64 and the winner is elected from a poll involving the most respected chess writers, journalists and critics from over 50 countries.

At last some good news on the cricketing front

VVS Laxman and Gautam Gambhir had scored double centuries and put India in commanding position in the first Test against visiting Australia.